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Accounting for peak shifting in traditional cost-benefit analysis

Author

Listed:
  • Snarr, Hal W.
  • Axelsen, Dan

Abstract

When cost-benefit analysis fails to account for peak-shifting the benefits of road improvement options are miscalculated. Using theory from transportation economics, we derive a simple model that disaggregates the average daily equilibrium into peak, counter-peak, and off-peak equilibria. This paper demonstrates how accounting for peak-shifting improves the performance of cost-benefit analysis.

Suggested Citation

  • Snarr, Hal W. & Axelsen, Dan, 2007. "Accounting for peak shifting in traditional cost-benefit analysis," MPRA Paper 37060, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:37060
    as

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    File URL: https://mpra.ub.uni-muenchen.de/37060/1/MPRA_paper_37060.pdf
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    References listed on IDEAS

    as
    1. Anna Matas & José-Luis Raymond, 2002. "The demand elasticity on tolled motorways," Working Papers wp0203, Department of Applied Economics at Universitat Autonoma of Barcelona.
    2. Calfee, John & Winston, Clifford, 1998. "The value of automobile travel time: implications for congestion policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 83-102, July.
    3. Small, Kenneth A & Winston, Clifford & Yan, Jia, 2002. "Uncovering the Distribution of Motorists' Preferences for Travel Time and Reliability: Implications for Road Pricing," University of California Transportation Center, Working Papers qt8zd2r34k, University of California Transportation Center.
    4. Kenneth A. Small & Clifford Winston & Jia Yan, 2005. "Uncovering the Distribution of Motorists' Preferences for Travel Time and Reliability," Econometrica, Econometric Society, vol. 73(4), pages 1367-1382, July.
    5. Braid, Ralph M., 1989. "Uniform versus peak-load pricing of a bottleneck with elastic demand," Journal of Urban Economics, Elsevier, vol. 26(3), pages 320-327, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Transportation Demand; Transportation Supply; Congestion; Cost/Benefit Analysis; Planning Policy;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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